Closing the Accountability Gap on Tax Exemptions in Erie County
Closing the Accountability Gap on Tax Exemptions in Erie County
The problem:
Erie County has $23.6 billion in tax-exempt property — 17.38% of all assessed value. At the current tax rate, that represents roughly $73 million a year in revenue the county doesn’t collect.
Not all of that is actionable. Government buildings, schools, and public land make up about $10.5 billion of that total. Nobody’s proposing we tax the county courthouse.
Erie County 2026 Budget Strategic Analysis
Erie County 2026 Budget: Strategic Analysis
The Big Picture
- Total Budget: $2.445 billion (all funds)
- General Fund: $2.081 billion (up 5.75%)
- Property Tax Rate: $3.09/thousand (historic low)
- Fund Balance: $149.5M unassigned
- The Crisis Ahead: Projected gaps of $90M (2027), $95M (2028), $83M (2029) driven largely by OBBB federal cost-shifting
WHERE TO SAVE MONEY
1. Mandate Cost Management (~$80.4M in new mandated costs)
- Safety Net assistance is growing fast (5,017 cases/month, $110/day hotel costs for homeless). Investing in permanent supportive housing would be far cheaper than hotel placements long-term.
- Day Care costs up $12M — the county should aggressively pursue state reimbursement rate increases and explore shared services with municipalities.
- Medicaid hitting the hard cap ($215.8M) for the first time — this needs Albany advocacy now, not later.
2. Personnel & Overtime (~$7.5M in OT cuts already made, but more room)
Issues Page Section: Tax Exemptions
Make Tax Exemptions Earn Their Keep
Erie County has over $23 billion in tax-exempt property — roughly 17% of our total assessed value. That includes government buildings, schools, nonprofits, hospitals, and economic development projects. Some of those exemptions serve the public well. Others haven’t been seriously reviewed in years.
Meanwhile, the county collects just over $100,000 in Payments in Lieu of Taxes (PILOTs) on properties that would otherwise owe more than $4 million. Working families are covering the difference.
Issues Page Section: Utility Costs
Fight Rising Utility Costs for Families and Taxpayers
Utility costs are one of the fastest-growing pressures on household budgets and county spending alike. Erie County spends $38.8 million a year on energy through its Utilities Aggregation Fund. Residents across District 11 are paying more every month for electricity and gas — and it’s about to get worse.
NYSEG has filed for a 35% increase in electric delivery rates and nearly 40% for gas, effective May 2026. For a typical household, that’s an extra $33 a month on electricity alone. National Grid already locked in three years of increases totaling 25%. These companies are posting rising profits year over year while families in Eden, Boston, and North Collins are choosing between heating their homes and paying their property taxes.
Revenue Diversification Analysis
Erie County Revenue Diversification — The Honest Picture
Where the Money Comes From Now
| Source | Amount | % of Total |
|---|---|---|
| Sales Tax (county share) | $613,968,909 | 26.89% |
| Sales Tax (shared with locals) | $492,645,838 | 21.57% |
| Property Tax (county) | $316,053,995 | 13.84% |
| Property Tax (library) | $31,875,741 | 1.40% |
| Property Tax Related | $20,680,560 | 0.91% |
| State Aid | $288,159,778 | 12.62% |
| Federal Aid | $264,651,642 | 11.59% |
| Interfund Revenue | $88,889,194 | 3.89% |
| Other Local Sources | $83,108,444 | 3.64% |
| Fees, Fines & Charges | $69,554,761 | 3.05% |
| Fund Balance | $13,904,663 | 0.61% |
The core problem: Sales tax (county + shared) is 48.5% of all revenue. Property tax is another 16.1%. State and federal aid is 24.2%. That’s nearly 89% of the budget from just three sources — and two of them (state/federal aid and sales tax) are recession-sensitive or politically vulnerable.